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A BILL TO BE ENTITLED
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AN ACT
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relating to reporting to the Texas Department of Insurance certain |
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information related to the denial of claims by personal automobile |
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and residential property insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 38, Insurance Code, is amended by adding |
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Subchapter K to read as follows: |
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SUBCHAPTER K. CLAIMS REPORTING BY CERTAIN INSURERS |
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Sec. 38.501. CLAIMS REPORTING BY AN AUTOMOBILE OR PROPERTY |
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INSURER. (a) In this section, "insurer" means an insurance |
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company, reciprocal or interinsurance exchange, mutual insurance |
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company, capital stock company, county mutual insurance company, |
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Lloyd's plan, or other legal entity engaged in the business of |
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personal automobile insurance or residential property insurance in |
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this state. |
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(b) An insurer shall submit a quarterly report to the |
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department containing the following information organized by zip |
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code: |
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(1) the number of claims filed with the insurer; |
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(2) the number of claims denied; and |
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(3) for each claim denied, the reason for the denial. |
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(c) The commissioner by rule shall adopt the form of the |
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report required under Subsection (b). |
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SECTION 2. Not later than December 31, 2017, the |
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commissioner of insurance shall adopt rules as necessary to |
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implement Subchapter K, Chapter 38, Insurance Code, as added by |
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this Act. An insurer subject to that subchapter shall make its |
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initial report under that subchapter not later than the 60th day |
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after the effective date of the rules. |
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SECTION 3. This Act takes effect September 1, 2017. |